igt records dire 2020 opening as covid 19 impacts all primary revenuesby Joker 18.05.2020 0 comments
IGT Plc has declared a tough opening to 2020 trading, reporting that COVID-19 restrictions have impacted ‘all business segments operating all primary revenue streams’.
Dire Q1 2020 metrics saw the firm record an 18% decline in group revenues to $940 million (Q12019: $1.14bn)
As a consequence of Mid-march lockdown orders the New York-listed technology group abruptly lost its revenue streams from global casino and gaming hall closures.
Further virus impacts saw IGT’s North American and Italian lottery segments record drastic declines in customer transactions through retail point of sale systems.
All IGT core business units comprising North America (-16%), Interactive (-20%), Italy (-36%) and International (-11%) recorded double-digit revenue declines during the trading period.
Operating under severe revenue constraints, IGT also posted a group EBITDA decline of 26% to $309 million (Q12019: $417m).
Closing its Q1 2020 accounts, IGT reported an operating loss of $197 million (Q1 2019: $178m), in part attributed to the firm carrying a $296 million goodwill impairment charge, reducing the carrying value of its North American and international units.
In its statement, the company moved to reassure investors, saying that the goodwill charge will have no impact on its operations, cash flow, ability to service debt, compliance with financial covenants, or underlying liquidity.
Further key metrics saw IGT continuing its stated objective of reducing long-term corporate debt which stands at $7.1 billion (Q12019: $7.7bn).
“After a solid start in the first two months of the year, we quickly shifted our focus to the global COVID-19 health crisis in March,” said Group CEO Marco Sala.
“The safety and well-being of our people, customers, and communities have been our highest priority since day one. We implemented robust business continuity plans and maintain service levels at our normal, high standards. I am grateful for the passion and perseverance the entire IGT team has demonstrated during these unprecedented times and I am confident IGT is well-positioned to emerge from the crisis a stronger, even more competitive organization.”